STAFI rDEX V1 IS LIVE ON TESTNET
Introduction
StaFi Protocol is well known to be a decentralized protocol that helps to provide liquid staking solutions and also build reward bearing and tradable rTokens. These rTokens are reward tokens users get from staking native tokens like BNB, ETH, KSM, SOL, ATOM on the StaFi app. These rtokens are tradable and require liquidity to enable users to swap, but there are limited number of decentralized exchanges that support trading of rtokens and it also requires a rigorous cross chain process and there is also the issue of high transaction fees to worry about. It is as a result of the aforementioned issues users face with rtokens that StaFi proposed the rDEX and this article is aimed at highlighting the features and giving a general overview of rDEX and how it will help provide solutions to the liquidity issues of rtokens.
What is rDEX?
rDEX is a StaFi owned decentralized exchange that solves liquidity problems for StaFi native rtokens and after series of internal testings, the StaFi rDEX V1 has been officially launched on the testnet and once it is available mainnet, native rtokens users get from staking can be directly traded in the rDEX where there will be better liquidity and this will eliminate the need for crosschain migration to other ecosystems.
Features of rDEX
- The rDEX will use StaFi’s native token FIS as the basic trading assets for all rtoken trading pairs to promote liquidity.
- Liquidity can be provided by any single currency or a dual currency model with different ratios.
- Impermanence loss protection, whereby the loss incurred by liquidity providers will be compensated by the FIS token.
- Low slippage in small and medium sized transactions which is realized through the AMM continuous liquidity pool market maker model. Check the link below for more details on the rDEX testnet https://test-app.rdex.finance/
How rDEX will directly Impact the StaFi Native Token FIS
When rDEX finally goes mainstream, it will be of benefit to the StaFi ecosystem as The rDEX will positively impact FIS in various ways as it will promote the FIS utility in the following ways
- FIS will be used for rDEX V1 liquidity mining incentives
- Since rDEX V1 will be directly deployed on the StaFi chain, users will need to pay FIS as gas fees when using rDEX V1.
- FIS will be used for Impermanent Loss Protection Fund Reserve to motivate liquidity providers.
Conclusion
The rDEX V1 testnet will be a very interesting development to the StaFi ecosystem, the cross chain and high transaction fees has always been an issue for rtokens. It will be interesting to see how rDEX will solve these issues and how it will impact the FIS token and the whole StaFi ecosystem.
About StaFi Protocol
StaFi is the first DeFi protocol unlocking liquidity of staked assets. Users can stake PoS tokens through StaFi and receive rTokens in return, which are available for trading, while still earning staking rewards. rToken is a synthetic staking derivative issued by StaFi to users when users stake PoS tokens through StaFi rToken App. rTokens are anchored to the PoS tokens staked by users and the corresponding staking rewards. rTokens can be transferred and traded at any time.
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